Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Ross Stores Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Net earnings	1,722,589)	85,382)	1,660,928)	1,587,457)	1,362,753)	1,117,654)
Depreciation and amortization	360,664)	364,245)	350,892)	330,357)	313,163)	302,515)
Loss on early extinguishment of debt	—)	239,953)	—)	—)	—)	—)
Stock-based compensation	134,217)	101,568)	95,438)	95,585)	87,417)	74,554)
Gain on sale of assets	—)	—)	—)	—)	(6,328)	—)
Deferred income taxes	15,775)	(27,812)	32,009)	31,777)	(34,903)	(8,703)
Merchandise inventory	(753,291)	323,357)	(81,897)	(108,707)	(128,849)	(93,782)
Other current assets	1,420)	(39,406)	(10,315)	(30,789)	(31,796)	(928)
Accounts payable	135,311)	938,837)	114,153)	110,483)	41,322)	83,085)
Other current liabilities	198,595)	171,444)	30,513)	37,080)	49,068)	76,676)
Income taxes	(44,579)	39,806)	(35,239)	3,706)	—)	—)
Operating lease assets and liabilities, net	7,647)	13,669)	15,631)	—)	—)	—)
Other long-term, net	(39,499)	34,890)	(567)	9,728)	29,431)	7,780)
Change in assets and liabilities	(494,396)	1,482,597)	32,279)	21,501)	(40,824)	72,831)
Adjustments to reconcile net earnings to net cash provided by operating activities	16,260)	2,160,551)	510,618)	479,220)	318,525)	441,197)
Net cash provided by operating activities	1,738,849)	2,245,933)	2,171,546)	2,066,677)	1,681,278)	1,558,851)
Additions to property and equipment	(557,840)	(405,433)	(555,483)	(413,898)	(371,423)	(297,880)
Proceeds from sale of property and equipment	—)	—)	—)	—)	15,981)	—)
Decrease in restricted cash and investments	—)	—)	—)	—)	2,310)	3,388)
Proceeds from investments	—)	—)	517)	3,489)	40)	1,729)
Net cash used in investing activities	(557,840)	(405,433)	(554,966)	(410,409)	(353,092)	(292,763)
Issuance of common stock related to stock plans	25,069)	23,534)	22,209)	20,112)	18,468)	18,539)
Treasury stock purchased	(57,345)	(45,222)	(60,665)	(54,384)	(45,433)	(43,321)
Repurchase of common stock	(649,997)	(132,467)	(1,275,000)	(1,075,000)	(875,000)	(700,000)
Dividends paid	(405,123)	(101,404)	(369,793)	(337,189)	(247,526)	(214,640)
Net proceeds from issuance of short-term debt	—)	805,601)	—)	—)	—)	—)
Payments of short-term debt	—)	(805,601)	—)	—)	—)	—)
Net proceeds from issuance of long-term debt	—)	2,965,115)	—)	—)	—)	—)
Payments of long-term debt	(65,000)	(775,009)	—)	(85,000)	—)	—)
Payments of debt extinguishment and debt issuance costs	—)	(232,688)	—)	—)	—)	—)
Excess tax benefit from stock-based compensation	—)	—)	—)	—)	—)	23,331)
Net cash provided by (used in) financing activities	(1,152,396)	1,701,859)	(1,683,249)	(1,531,461)	(1,149,491)	(916,091)
Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents	28,613)	3,542,359)	(66,669)	124,807)	178,695)	349,997)
Cash and cash equivalents, and restricted cash and cash equivalents, beginning of year	4,953,769)	1,411,410)	1,478,079)	1,353,272)	1,111,599)	761,602)
Cash and cash equivalents, and restricted cash and cash equivalents, end of year	4,982,382)	4,953,769)	1,411,410)	1,478,079)	1,290,294)	1,111,599)

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

Net Earnings: Net earnings showed a consistent upward trend from 2017 to 2020, rising from 1,117,654 to 1,660,928 thousand US dollars. However, in 2021 there was a sharp decline to 85,382 thousand US dollars, followed by a strong recovery in 2022 to 1,722,589 thousand US dollars.
Depreciation and Amortization: This expense gradually increased each year, moving from 302,515 thousand US dollars in 2017 to 360,664 thousand US dollars in 2022, indicating steady investment in fixed assets and their systematic expense recognition.
Stock-based Compensation: The cost associated with stock-based compensation grew steadily over the analysis period, increasing from 74,554 thousand US dollars in 2017 to 134,217 thousand US dollars in 2022, reflecting increased equity incentives.
Merchandise Inventory: The inventory figures exhibited significant volatility. Negative values in 2017 through 2020 transitioned to a positive 323,357 thousand US dollars in 2021, then reverted to a negative 753,291 thousand US dollars in 2022, suggesting fluctuations in inventory management or valuation methods.
Accounts Payable: Accounts payable generally increased over time, with a notable spike in 2021 reaching 938,837 thousand US dollars, which then declined sharply to 135,311 thousand US dollars in 2022, indicating changes in payment timing or supplier credit terms.
Change in Assets and Liabilities: There was considerable variability across years, including a significant increase of 1,482,597 thousand US dollars in 2021 followed by a large decrease of 494,396 thousand US dollars in 2022. This denotes fluctuating working capital conditions.
Net Cash Provided by Operating Activities: Operating cash flow increased steadily from 1,558,851 thousand US dollars in 2017 to 2,245,933 thousand US dollars in 2021, before declining in 2022 to 1,738,849 thousand US dollars, a pattern consistent with net earnings performance.
Net Cash Used in Investing Activities: Negative cash flows from investing activities deepened over the period, ranging from -292,763 thousand US dollars in 2017 to -557,840 thousand US dollars in 2022, primarily due to consistently high capital expenditures for property and equipment additions.
Net Cash Provided by (Used in) Financing Activities: Financing activities generally displayed cash outflows until 2020, reflecting substantial share repurchases and dividend payments. In 2021, financing activities showed a large positive inflow of 1,701,859 thousand US dollars, indicating significant new debt issuance, followed by cash outflows in 2022.
Share Repurchase and Dividends: There was a strong emphasis on share repurchases across years until 2020, with declining magnitude in 2021. Dividend payments increased over time except for a dip in 2021, aligning with fluctuations in free cash flow and earnings.
Cash Position: The cash and equivalents balance consistently grew except for a dip in 2020. It surged dramatically in 2021, more than tripling the previous year's level, likely reflecting the net effect of financing activities and operational cash flows.

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Ross Stores Inc. (NASDAQ:ROST)

Cash Flow Statement